Central Bank to raise Rs 1297 cr via share issue to govt

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PTI

July 20, 2016

UPDATED: July 20, 2016 21:15 IST

New Delhi, Jul 20 (PTI) Public sector Central Bank of India will raise Rs 1,297 crore by issuing preference shares to the government. Banks Capital Raising Committee of the Board of Directors will hold a meeting on July 25 to "consider and approve raising of additional equity capital up to Rs 1,297 crore by issuance and allotment of equity shares to Government on preferential basis," the bank said in a BSE filing. Capital Raising Committee of the Board of Directors may also decide to hold an Extra-Ordinary General Meeting of shareholder on 18 August to consider and pass the necessary Special Resolution, it added. For current fiscals capital infusion commitment of Rs 25,000 crore in public sector banks, government released Rs 22,915 crore yesterday for 13 PSU banks including SBI, PNB, Canara Bank, Bank of India and Central Bank of India.

The Finance Ministry said 75 per cent of the amount collected for each bank is being released now to provide liquidity support for lending operations as also to enable banks to raise funds from the market.

It said the remaining amount will be released later based on their performances.